Cash for Clunkers?

[elwestb]

Think of it this way -

A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.

A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.

So, the average Cash for Clunkers transaction will reduce US gasoline consumption by 320 gallons per year.

They claim 700,000 vehicles so that's 224 million gallons saved per year.

That equates to a bit over 5 million barrels of oil.

5 million barrels is about 5 hours worth of US consumption.

More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars.

So, the government paid $3 billion of our tax dollars to save $350 million.

We spent $8.57 for every dollar saved.

I'm pretty sure they will do a great job with health care though...?

 

[elwestb]

Does anyone know what was the cost of the Clunkers Deal? Where do they get $3 billion from? The rest of the math is interesting though!

 

[WLG]

Sure...the government has ALWAYS done such a good job with all of the programs they run...like social security !!! emoRolleyes Lets just let them take control of everything why dont we

 

[M GO BLUE]

WLG - 2/23/2010 8:05 PM

Sure...the government has ALWAYS done such a good job with all of the programs they run...like social security !!! emoRolleyes Lets just let them take control of everything why dont we

I'm PISSED over the fact that I continue to pay for it, but will NEVER see any benefit from it?!?! It will be a a long-lost figment of the imagination when I'm old enough to retire... emoBang

 

[RattleTrapper]

elwestb - 2/23/2010 10:52 PM


Think of it this way -
A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.
So, the average Cash for Clunkers transaction will reduce US gasoline consumption by 320 gallons per year.
They claim 700,000 vehicles so that's 224 million gallons saved per year.
That equates to a bit over 5 million barrels of oil.
5 million barrels is about 5 hours worth of US consumption.
More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars.
So, the government paid $3 billion of our tax dollars to save $350 million.
We spent $8.57 for every dollar saved.
I'm pretty sure they will do a great job with health care though...?

There were quite a few new vehicles purchsed as a result of the program, both domestic and foreign. It saved some jobs, generated some tax revenue, and got some junkers off the road. Overall, I think it was a fairly positive program, although I do agree that the proposed health care reform would be a train wreck...